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Sterling strengthens against CHF (Daniel Johnson)

Sterling has made consistent gains against the Swiss Franc over the last week and now sits at a yearly high of 1.34. These gains can be attributed predominantly due to an extremely optimistic UK growth forecast from Lord Jim O’Niell.

O’Neill was specifically looking at the possibility of a UK economic recovery post-Brexit. O’Neill stated the damage caused by Brexit could quickly be repaired.

O’Neill said ‘That is because some parts of the UK, led by the north west, are actually doing way better than people seem to realise or appreciate.”

As well as this crucial fact, the rest of the world is also doing way better than many people would have thought a year ago, so it makes it easier for the UK.”

From the Swiss side the most significant event was a speech from Swiss National Bank (SNB) Chairman, Thomas Jordan who stated the “Swiss Franc is still highly valued.”

He also that a raise in rates is some way off, stating;

‘Swiss inflation is still very low, significantly under 2%, actually even under 1%. There is no need to rush things’.

The Swiss Franc value is heavily controlled by the SNB who sell off assets if the currency becomes strong to artificially create weakness.

A concern for Sterling sellers however is Phase 2 of Brexit talks which is due to commence shortly. Barnier and Davis are at logger heads and talks are set to be problematic which could result in Sterling weakness.

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